HRCI PHR Exam (page: 6)
HRCI Professional in Human Resources
Updated on: 25-Dec-2025

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Henry is the HR Professional for his organization and he's discussing the status of Amy's employment. Amy earns $87, 500 per year and receives a paycheck via direct deposit every two weeks. Amy was hired under the offer of a salary position, but she feels that she is working far more than the agreed 40 hours per week. Based on these scenarios, do you believe Amy is exempt or non- exempt?

  1. Amy is exempt because she is paid on a salary basis.
  2. Amy is not exempt because she is working more than ten percent of her total agreed hours per week.
  3. Amy is exempt because she earns more than $1, 000 per week.
  4. Amy is not exempt because she is offered bonuses as part of her pay.

Answer(s): A

Explanation:

An exempt employee is someone who is paid on a salary basis and earns more than $455 per week. As the question states, Amy was hired under the offer of a salary. Answer option C is incorrect. While Amy does earn more than $1, 000 per week, this doesn't automatically qualify her as exempt.
Answer option D is incorrect. Bonuses do not automatically qualify someone as non-exempt. Answer option B is incorrect. The question doesn't tell how much additional hours Amy is actually working so this isn't a good choice. The amount of hours a person works doesn't directly affect their exempt or non-exempt status.



You are a HR Professional for your organization and your supervisor is asking you about the details of the Civil Rights Act of 1991, and what it means to your company. He wants to know what the total damages could be if an organization is found liable by a jury trial. What is the maximum amount that could be awarded to a victim of discrimination if the organization is found liable?

  1. There is no limited amount as the jury can determine damages
  2. $50, 000
  3. $300, 000
  4. $500, 000

Answer(s): C

Explanation:

The maximum amount that can be awarded is $300, 000. This amount, however, can be lowered based on the number of people involved in the discrimination lawsuit. Answer options B, D, and A are incorrect. The maximum amount allowed by the Civil Rights Act of 1991, is $300, 000.



On November 13, 2000 CFR Part 60-2 was revised to address affirmative action to make the rules more accessible and easier to implement. Which of the following statements is not part of this significant update to the Affirmative Action program in CFR Part 60-2?

  1. Reduced the number of additional required elements of the written Affirmative Action Plan from 10 to 4
  2. Reaffirmed that affirmative action isn't to establish quotes, but to create goals
  3. Granted employers with fewer than 100 employees, permission to prepare a job group analysis that uses EEO-1 categories as job groups
  4. Workforce analysis was replaced with a one-page organizational profile

Answer(s): C

Explanation:

The update to CFR Part 60-2 was revised and allowed employers with fewer than 150 employees, not 100, permission to prepare a job group analysis that uses EEO-1 categories as job groups. Answer options D, B, and A are incorrect. These statements are part of the CFR Part 60-2 revision.



Herb is the HR Professional for his organization. He is preparing to hire a new employee, Hans, to the firm. Herb has asked Hans to agree, in writing, to mandatory arbitration as part of the employment offer. What does this agreement mean?

  1. It means that Hans and the organization must settle all disputes, if any arise, through a neutral third party rather than through a lawsuit.
  2. It means that Hans must file all legal complaints with the organization's attorney, before filing a lawsuit against the organization.
  3. It means that Herb's firm can research Hans to determine if he's had any lawsuits.
  4. It means that Hans cannot work for competitors without the written permission of the employer.

Answer(s): A

Explanation:

Mandatory arbitration helps the organization avoid lawsuits, should any arise, between the employee and the employer, by agreeing up-front to settle potential disagreements through an arbitrator versus a lawsuit.
Answer option D is incorrect. This answer describes a non-compete agreement. Answer option C is incorrect. This isn't a valid answer for the mandatory arbitration agreement. Answer option B is incorrect. Hans doesn't need to file legal complaints with his employer under this agreement. The agreement means that Hans and the employer will settle the problem without a lawsuit.



As an HR Professional, you should be familiar with OSHA rules, standards, and regulations. Should an organization violate an OSHA standard, there are often penalties that the employer must pay. What is the maximum fine an employer may face for a deliberate and intentional violation of an OSHA standard?

  1. $100, 000
  2. $10, 000
  3. $50, 000
  4. $70, 000

Answer(s): D

Explanation:

OSHA can fine an employer up to $70, 000 for a willful violation. In addition, incarceration is possible for the violation. Answer options B, C, and A are incorrect. These are not the maximum amount for the violation.



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